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The deployment dialog box has two deploy types to choose from: Exploded Archive and Packaged Archive. According to the User Guide, Exploded Archive takes advantage of the “Sync-on-demand” feature. But it comes short of comparing the difference between Exploded Archive and Packaged Archive. I will appreciate that if you can explain it to me.
There a nice article about Sync-On-Demand, and why it’s a breakthrough for development, available on the News & Updates page. I think it will do a much better job at answering your questions than I could.
If you still have some questions after reading it, come on back. 🙂